Charles Schwab Corp. (0L3I) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Charles Schwab Corp. $186, price $97.10, upside +91.6%, quality 73 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $44.99 – $113.18 · fair‑value band $63.91 – $268.50 · the $97.10 price screens below the $186.01 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.
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The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services. It offers brokerage accounts with equity and fixed income trading, margin lending, options trading, futures and forex trading, and cash management capabilities, including money market funds, and certificates of deposit; third-party mutual funds through the Mutual Fund Marketplace and Mutual Fund OneSource service, as well as mutual fund trading and clearing services to broker-dealers; exchange-traded funds; advisory solutions for managed portfolios, separately managed accounts, customized personal advice for tailored portfolios, specialized planning, and full-time portfolio management; banking products comprising checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit, and pledged asset lines; and trust custody services, personal trust reporting services, and administrative trustee services. It provides digital and software based trading platforms; research tools, and multichannel support, real-time market data, options trading; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; retirement plan services; mutual fund clearing services; and advisor services, including interactive tools and educational content. The Company operates through branch offices. The Charles Schwab Corporation was founded in 1971 and is headquartered in Westlake, Texas.
Stock analysis
Charles Schwab Corp. (0L3I) currently trades at $97.10, while our model-based Fair Value estimate is $186.01, implying the stock looks roughly 47.8% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $187.78 per share, and 6 of the 11 models we run sit above the $97.10 price.
Bear case: the Asset-Based group reads lowest at $24.51, and 5 of the 11 models stay below the price. Evidence for this calculation is medium.
Scenario range: $63.91 (bear) to $268.50 (bull), the price of $97.10 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 73/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Charles Schwab Corp. reported revenue of $27.7B in FY2025 versus $19.0B in FY2021, a compound +9.9%/yr. Reported net income was $8.9B in FY2025, compounding +10.9%/yr from FY2021.
Key figures
Market cap $176B · P/E ratio 0.4 · P/S ratio 0.12 · EPS (TTM) $2.77 · Dividend yield 1.2% · Net margin 32.0% · Return on equity 20.3% · Return on assets (EBIT) 2.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 14% below its 52-week high and 14% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −30% fair-value upside, at 92%, 0L3I screens cheaper than that median.
Fair Value models
Bear $63.91Fair Value $186.01Bull $268.50
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($1.20 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+6.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+18.0%
Start year 2020 (pandemic). Over 10 years: +15.9% a year
Revenue growth 13 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.4%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+13.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+12.2%
Dividend (yield on the price)1.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.11.8% vs 16.9%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.38% → 49%
2025 sits 51% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Start year 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+1.7%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+8.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in USD, USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −0.7% a year for the price and +5.6% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Capital Markets · 462 stocks
Beats the industry median on 8/10 measures
Overall it ranks above its industry peers.
Valuation
Quality Score72 · Top 25%
Fair Value upside+91.5% · Top 25%
Profitability
Return on equity (TTM)20.3% · Top 25%
Return on assets2.1% · Above median
Net margin (TTM)38.8% · Top 25%
Operating margin (TTM)51.9% · Top 25%
Growth and dividend
Revenue growth20.9% · Above median
Dividend yield (TTM)1.2% · Below median
Balance sheet
Debt / equity0.28× · Above median
Valuation Multiplesvs Capital Markets median · lower = cheaper
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Is Charles Schwab Corp. (0L3I) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $186.01 versus a price of $97.10, about +92% upside (undervalued).
What is the fair value of 0L3I?
Our model-based fair value for Charles Schwab Corp. is $186.01 (as of Sep 24, 2026), built from audited fundamentals. The current price: $97.10.
What is the quality score of 0L3I?
Charles Schwab Corp. has a Quality Score of 73/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Charles Schwab Corp. (0L3I)?
Our model-based price target is the fair value of $186.01 (as of Sep 24, 2026) from 11 valuation models. Cautious scenario $63.91, optimistic scenario $268.50. It is a calculation from audited fundamentals, not an analyst target.
What is the Charles Schwab Corp. stock forecast for 2026?
Our models put fair value at $186.01, about +92% upside versus a price of $97.10 (undervalued). Cautious scenario $63.91, optimistic scenario $268.50. The calculation is refreshed regularly with new filings.
What is the revenue of Charles Schwab Corp. (0L3I)?
Charles Schwab Corp. reported trailing-twelve-month revenue of about $26.0B (latest available figure, as of Sep 24, 2026).
Does Charles Schwab Corp. pay a dividend?
Charles Schwab Corp. currently shows a dividend yield of about 1.22% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Charles Schwab Corp. (0L3I)?
For today's price to be fair in a discounted-cash-flow model, Charles Schwab Corp. would have to grow free cash flow by +1.7 % per year for five years (discount rate 9.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +18.0 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 0L3I use?
Our models discount Charles Schwab Corp. at 9.7 %: a base by market capitalisation (unknown), damped by beta 0.76, country premium for United Kingdom. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Charles Schwab Corp. that is +1.7 % per year a year over ten years, using the same discount rate (9.7 %) and the same formula as our fair value.
How much growth has Charles Schwab Corp. (0L3I) delivered so far?
Over the past 5 years revenue at Charles Schwab Corp. grew +18.0 % a year. The price currently implies +1.7 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Charles Schwab Corp. (0L3I) growing?
The median revenue growth in the sector is +7.3 % a year. That is the yardstick for the growth priced into Charles Schwab Corp. (+1.7 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Charles Schwab Corp. (0L3I)?
The free-cash-flow yield on the price is 5.71 %: that much free cash flow Charles Schwab Corp. produces per unit of market value. When it exceeds the discount rate of our models (9.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Charles Schwab Corp. (0L3I)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Charles Schwab Corp. it is $186.01 per share (as of Sep 24, 2026), against a price of $97.10. It is the blended result of 11 valuation models (cash flow, earnings, asset, dividend).
Is Charles Schwab Corp. stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 0L3I trades below its calculated fair value: price $97.10, fair value $186.01, a gap of about +92% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 0L3I?
No. The price is what the market pays today ($97.10); the fair value is what the company's own numbers justify ($186.01). For Charles Schwab Corp. the two are $88.91 per share apart. That gap is exactly why we show both numbers side by side.
How much is Charles Schwab Corp. worth?
The market values Charles Schwab Corp. at about $176B (market capitalisation, as of Sep 24, 2026). Per share that is $97.10; our models calculate a fair value of $186.01 per share.
What do the bullish and bearish scenarios say about 0L3I?
Our models span a range for Charles Schwab Corp.: cautious scenario $63.91, base $186.01, optimistic $268.50 per share (as of Sep 24, 2026, price $97.10). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 0L3I?
Charles Schwab Corp. trades at a price-to-earnings ratio of 0.4 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $186.01 is built from several models across several years.
How solid is the balance sheet of Charles Schwab Corp. (0L3I)?
Balance-sheet figures for Charles Schwab Corp. (as of Sep 24, 2026): return on equity 20.3%, debt of 0.28 per unit of equity. They feed the Quality Score of 73/100, which measures business quality independently of the share price.
How far is 0L3I from its 52-week high?
Charles Schwab Corp. trades at $97.10, about 14% below its 52-week high of $113.18 and 14% above the low of $84.91 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $186.01 is for.
Which stocks are comparable to Charles Schwab Corp.?
From the same area (Financial Services) we also value Morgan Stanley, a financial holding company,, The Goldman Sachs Group, Interactive Brokers Group, Robinhood Markets, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Charles Schwab Corp. stock attractive at the current price?
The data as of Sep 24, 2026: price $97.10, calculated fair value $186.01 (+92%), Quality Score 73/100, from 11 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 0L3I calculated?
We run Charles Schwab Corp. through 11 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $186.01, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Charles Schwab Corp. currently trades 48 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Charles Schwab Corp. (0L3I)?
The closing price on Oct 2, 2026 was $97.10. Our model-based fair value is $186.01, about +92% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Charles Schwab Corp. right now?
The rarer combination: high quality (73/100) AND below fair value. That earns a closer look rather than a quick verdict. The model range is unusually wide ($63.91 to $268.50). The outcome hinges heavily on assumptions, so read the point estimate with caution. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Charles Schwab Corp. (0L3I) come from?
Earnings per share at Charles Schwab Corp. grew +11.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +12.5 %, EBIT margin +7.0 %, tax rate +4.1 %, residual (interest, one-offs) −11.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Charles Schwab Corp.
How large is the market capitalisation of Charles Schwab Corp. (0L3I)?
The market capitalisation of Charles Schwab Corp. is $176B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Charles Schwab Corp. (0L3I)?
The price-to-sales ratio of Charles Schwab Corp. is 0.12 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Charles Schwab Corp. (0L3I)?
Earnings per share at Charles Schwab Corp. are $2.77 (price ÷ EPS = P/E 0.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Charles Schwab Corp. (0L3I)?
The dividend yield of Charles Schwab Corp. is 1.2% (payout 42.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Charles Schwab Corp. (0L3I)?
The net margin of Charles Schwab Corp. is 32.0% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Charles Schwab Corp. (0L3I)?
The return on equity (ROE) of Charles Schwab Corp. is 20.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Charles Schwab Corp. (0L3I)?
On an EBIT basis the return on assets of Charles Schwab Corp. is 2.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Charles Schwab Corp. (0L3I)?
The operating margin of Charles Schwab Corp. is 51.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Charles Schwab Corp. (0L3I)?
Revenue at Charles Schwab Corp. is growing +20.9% versus a year earlier (3y avg +7.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Charles Schwab Corp. (0L3I)?
Earnings per share at Charles Schwab Corp. are growing +42.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Charles Schwab Corp. (0L3I) hold?
Charles Schwab Corp. holds more cash than debt, $13.5B net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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